Programs of work
Car parking
Chapter 16 of the Fringe Benefits Tax - A guide for employers is being updated to include detail on the members of the public issue.
Members must nominate to be included in the consultation of this update.
Plug-in-hybrid electric vehicles - valuing fuel
An update was provided on consultation matter [202405] Plug-in hybrid electric vehicles valuing fuel.
A workshop was conducted in July to test the preferred methodology submitted by members and feedback is being reviewed.
Charging private electric vehicles at work
The Australian Taxation Office (ATO) confirmed that they would review advice and guidance on this issue.
Members were asked to consider ideas on how to value the electricity and provide examples detailing current arrangements.
Plug-in hybrid electric vehicles exemption
From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) will not be considered zero or low emissions vehicles under FBT law and will not be eligible for the electric car exemption. However, an employer can continue to apply the exemption if:
- the PHEV was exempt from FBT before 1 April 2025
- they have a continuing financially binding commitment to provide private use of the vehicle to an employee or their associate on and after 1 April 2025.
Updated website guidance is being prepared about what constitutes a financially binding commitment.
Member submission
In response to a members' submission, the ATO prepared a draft response for discussion.
Maintaining a valid logbook during a ‘representative period of business use’
The ATO acknowledged that the legislation does not require the 12-week logbook period be maintained during a period of typical business use. However, in accordance with the Fringe Benefits Tax - A guide for employers the ATO recommends to keep a logbook during a representative period, which assists employers to get their FBT obligations right.
Penalties may apply if the estimate of the business kilometres is not reasonable and the employer’s FBT liability is understated as a result.
Determining if a car is considered a ‘pooled’ or ‘shared’ car for reportable fringe benefits tax purposes for a couple working together
The ATO advised that an employee's use of a car is not a reportable fringe benefit if:
- the employee's use of the car was a car fringe benefit
- an employer allowed another employee to use the same car in the same fringe benefits tax year, and their use was also a car fringe benefit.
Therefore, if the employer does not direct both the husband and the wife in their capacity as employees to drive the car, and a car benefit is not provided to both employees, then the car is not a pooled or shared car for the purposes of the reporting exclusion.
Applying the minor benefits exemption to an associate, where the minor benefits exemption is unavailable for an employee
A benefit is an exempt minor benefit if:
- the notional taxable value of the benefit is less than $300
- it would be unreasonable to treat the benefit as a fringe benefit after considering the factors outlined in paragraph 58P(1)(f) of the Fringe Benefits Tax Assessment Act 1986.
Taxation Ruling TR 2007/12This link will download a file Fringe benefits tax: minor benefits states at paragraph 9
In considering the application of the exemption under section 58P it is necessary to look to the nature of the benefit provided and give due weight to each of the criteria. The weight given to each criterion will also vary depending on the circumstances surrounding the provision of each benefit.
Therefore, the ATO is unable to provide a broad statement that when the minor benefits exemption is unavailable to employees, it is also unavailable to associates of the employee.
However, the ATO does advise, where the same benefit is provided under identical circumstances to an employee and their associate, the same conclusion regarding eligibility for the minor benefits exemption should be reached (refer Example 2 in TR 2007/12).
Other business
The group was advised of the intention to close the FBT Stakeholder Group at the end of the calendar year and use other channels to address FBT issues, including other ATO stewardship groups and targeted consultation processes.